Major Rating Factors: History of adequate reserve strength (6.8 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good overall profitability index (5.4) despite operating losses during the first six months of 2022.
Other Rating Factors: Good liquidity (6.0) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Fair overall results on stability tests (4.0) including potential drain of affiliation with Automobile Club of Michigan Group. Strong long-term capitalization index (8.3) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels.
Stability Factors: R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Homeowners (53.1%), personal/comm auto (45.5%), other (1.4%)
Licensed in: CA, IL, MI, MN, NE, NY, ND, PA, WI
Principal Investments: Common stock (32.7%), investment grade bonds (28.3%), non investment grade bonds (4.4%), real estate (0.9%), preferred stock (0.5%), other (33.3%)